Management Practices for More Profit


Richard Lichtenwalner


Surviving in the beef cattle business in 1996 (and 1997) will require all the management skills one can muster. Trade magazines are full of articles on cost cutting practices and they are all of some worth. The following "MIX and MATCH" questions are not so much to determine the economic value of the management practice described, but more importantly, to remind producers that some practices demand more attention than others.

The gross returns for the following management practices were calculated for a 30-cow herd. To test your understanding of the potential return from various management practices try the following quiz.

Connect Management Practice to Corresponding Return
Extra $ / Year / Herd Management Practice
1 936 A Selective genetics
2 630 B Intensive grazing
3 576 C Marketing at graded sales
4 479 D Calf best management practices
5 374 E Increase weaning % (by 10%)
6 374 F Narrowing calving season

A key to the correct answers is given at the end of the article and an explanation of the correct responses follows:

1.The number one means of increasing gross returns of the beef cattle enterprise is to increase the weaning % by 10 percentage points.

Assume a 30 Cow Herd:80 % Weaning = 24 Calves per Year
90 % Weaning = 27 Calves per Year
Value of Three Extra Calves :3 calves @ 480 lbs. @ .65 per lb. = $ 936 extra per year

According to several surveys, the weaning % for NC is between 75 to 80; whereas the average for the entire country is about 70 %. The surveys also pointed out that the upper one-third of beef producers were weaning better than 90%. So the question is : where are you losing calves and why? The first step to increase weaning percentage is to identify where it is that you are losing calves. Then you can focus on that particular aspect of management.

Time of Calf Loss Possible Reasons
(1) prior to calving a
b
open (age, nutrition, disease)
abortions (infectious diseases, molds, toxicants)
(2) at calving to calving plus 2 days a
b
c
d
e
dystocia due to high birth weight
improper presentation
underdeveloped replacement heifers
ditches, ponds, predators
cows not checked/assisted
(3) the first two weeks a
b
c
d
infections (unsanitary conditions)
genetic disorders
nutritional deficiency (Se or Vit A)
inadequate colostrum
(4) 14 to 90 days a
b
milk (too much or too little)
accidents
(5) 90 days + a
b
c
diseases
nutrition deficiency
accidents

2.The second greatest return can come from using calf best management practices which I consider to include deworming, implanting, castration and fly control. It is bothersome to go to a stockyard and see calves that have not undergone these basic practices. For a 30-cow herd, the returns for these management practices are:

a.Deworming at 3 to 4 months of age. Data indicates that it adds 7 to 22 lb to weaning weight of calf.

If average 10 extra lb. at weaning:10 lbs @ $.65 x 24 calves=$ 156
minus cost of $ 1.50 per head=- 36
net return of=$ 120

b.Implanting once prior to weaning. Data indicate an additional 15 pounds at weaning.

15 lbs @ $.65 x 24 calves=$ 234
minus cost of $ 1 per head=- 24
net return of=$ 210

c.Castration of bull calves. Steers weighing 400-500 lbs. sell for an average of 4 cents per pound more than bull calves.

480 lbs @ $.04 x 12 calves= $ 230

d.Fly control. Data indicate an additional 7 lbs at weaning.

7 lbs @ $.65 x 24 calves=$ 109
minus cost of $ 1.40 / hd=- 34
net return of=$ 75
Total return=$ 630

Adding up these four basic management practices yields a grand total of $ 630 return. There is a tendency to let these low prices depress us to the point that we develop an attitude of "why bother" with the basic management practices. The cash return to labor and management may not be as great as indicated in this example, but there is still a positive return to the efforts.

3.Marketing through graded sales.

a.Graded sales average 2 - 8 cents/ lb over weekly sales. Using an average of $0.05 per lb. :

$0.05 x 480 lbs x 24 calves = $ 576

4.Intensive grazing and pasture management.

a.Data indicate that good forage management can increase carrying capacity 10 - 15%

b.With a 10% improvement, instead of 30 cows, you could run 33 and wean 2.4 extra calves

2.4 calves @ 480 lbs @ $.65 per lb = $ 749

c.Cost

* fencing - (box, posts, wire, gates, time) $ 750 over 5 years = $ 150 per year
* seeding & fertilizing improved grasses $ 120 per year
d.Returns to labor and management $ 479 per year

5.Narrowing the calving season.

The average weaning weight of a herd may be 480 lbs, but within that herd, there are calves at exceed that average and others that fail to meet it. The variation within a herd is dependant upon many factors. In calculating what such variation costs, a figure of +/- 15% is a conservative figure.

a.Assume a 30 cow herd calved as follows:

Cycle # Head WW, lb
1st 21 days 6 552
2nd 21 days 6 516
3rd 21 days 6 444
4th 21 days 6 408
84 -90 day 24 480

b.Decide to keep extra heifers and cull late calvers.

To accomplish this:
  1. breed heifers 30 days ahead of cow herd
  2. pull bull after 63 days with cows
  3. cull cows not bred and late calving cows to keep 30 head

c.Calving sequence the following year:

# head WW, lb.
heifers 6 504
1st 21 days -cows 6 552
2nd 21 days 6 516
3rd 21 days 6 444
cows calving within 63 days 24 504

Even though the calves from the heifers have an extra 21 days in age over the other calves, they will not weigh as much as the calves from the early, good group. They should out-weigh the rest of the herd though; if one has selected wisely.

d. Gross return
(From previous average of 480 lb WW)
504 - 480 = 24 extra lb@$0.65 = $ 374

6. Genetic improvement or selective breeding

a. Cross-breeding can add 5% to ww (24 lb)
b. Use of EPD in bull selection can add 24 pounds to ww
c. Returns24 lbs @ $0.65 x 24 calves= $ 374

After looking over these six examples of management practices that can increase your income from beef cattle, are there some that you have overlooked in the past? Now is the time to contact your extension livestock agent for more information on these and other practices and assistance in implementing a sound management program.

Answers to the Quiz: 1 - E, 2 - D, 3 - C, 4 - B, 5 - F, 6 - A


Animal Husbandry Newsletter April 1996
Published by North Carolina Cooperative Extension Service, North Carolina State University, Raleigh, North Carolina
Distributed in furtherance of the Acts of Congress of May 8 and June 30, 1914. Employment and program opportunities are offered to all people regardless of race, color, national origin, sex, age, or disability. North Carolina State University, North Carolina A&T State University, U.S. Department of Agriculture, and local governments cooperating.
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